The price of Bitcoin (BTC) soared from $ 5,688 to a daily high of $ 6,600 on Monday night. Leading digital assets have smashed analysts' worst concerns as they held support at $ 5,400. Bitcoin is currently continuing to show increasing strength in the face of the dire stock market.

Interestingly, gold and silver also surged 4.42% and 5.94%, while the Dow Jones and S&P500 closed with a slight decline. This may indicate that market participants have recently been freed from their stock positions to find safe havens and increase their value storage assets.

Therefore, cryptocurrency investors will closely watch to see if Bitcoin's price action is separate from the traditional market.

Daily crypto market performance. Source: Coin360
Daily crypto market performance. Source: Coin360

At the time of writing, the bulls are defending the $ 6,400 resistance level to ensure the daily candle closes above this level. For the past few days, analysts have been proposing that BTC needs to turn the $ 6,400 resistance level into support, and although today's $ 6,600 pump is encouraging, traders still need to watch. Is the buying volume large enough to support the current uptrend?

4-hour chart of BTC / USDT. Source: TradingView
4-hour chart of BTC / USDT. Source: TradingView

On shorter time frames, traders should note that the moving average convergence divergence (MACD) is in the process of converging with the signal line and the histogram are on the way to move above 0.

The relative strength index (RSI) is also climbing to bullish territory and is currently above 61. Achieving the level above $ 6,455 set the price of Bitcoin on the Fib 50% retracement, but the 61.8% retracement. is expected to act as a stiff resistance.

A quick glance at Bitcoin's price history on the daily time frame shows that prices have always encountered resistance at this level below 61.8% and supported at this retracement level when trading above that level.

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Daily chart of BTC / USDT. Source: TradingView
Daily chart of BTC / USDT. Source: TradingView

It should be noted that a decline of $ 6,900 on March 20 is within the reach of the 61.8% Fib retracement level at $ 7,101. From November 27, 2019 until January 3, 2020, the 61.8% Fib level has provided stable support to prevent a major volume breakout, it can now act as a level. resist. The VPVR indicator also displays a high volume button right here.

In the case of a pullback, $ 6,200 will be the nearest basic support and below is $ 5,800 and $ 5,500 has been shown to be strong support. As mentioned yesterday, risk-averse traders can wait for a few 4-hour candles to close above the uptrend line or a daily close above $ 6,455.

The altcoin market has also performed well when Bitcoin prices hit an impressive increase today. Ether (ETH) increased by 5.06% to $ 131.52, Litecoin (LTC) increased by 6.23% to trade at $ 38.25 and Tezos (XTZ) increased by 8.05% and is currently trading at USD 1.66.

The total market capitalization of cryptocurrencies is at USD 181.9 billion with Bitcoin's dominance rate reaching 64%.

Readers can update BTC rates and more than 2,000+ cryptocurrencies in real time here.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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